PennDOT approves use of capital funds for SEPTA, paving way for service restorations

Gov. Josh Shapiro has directed the Pennsylvania Department of Transportation to approve SEPTA’s request for a one-time use of state capital assistance funding that will allow the public transit agency to resume full service over the next two years. 

SEPTA will restore full operations using $394 million in state-allocated funds on Sept. 14, reversing the 20% bus and metro service cuts that began three weeks prior. The previously planned 21.5% fare increase will still take effect on Sept. 14, raising SEPTA’s base price to $2.90 per ride. 

While the capital fund has $2.4 billion in it, though PennDot Secretary Michael Carroll previously said that “every single dollar” in the fund “has an expected use.” Officials are working to determine what SEPTA infrastructure projects could be affected. 

The approval came after SEPTA General Manager Scott Sauer requested permission from Carroll to tap into capital funds on Friday — according to a Sept. 5 letter obtained by The Philadelphia Inquirer — due to the prolonged state budget impasse and statewide transit funding crisis. 

In a letter sent to SEPTA on Monday, Carroll agreed to transfer the funds under the conditions that “SEPTA will continue to address its structural challenges and report to PennDOT every 120 days the steps taken and progress made to increase efficiencies within the system.” 

“The Administration has been, and will continue advocating for a long-term, recurring, funding solution to ensure the Commonwealth’s transportation services can provide reliable service for Pennsylvanians to get where they need to go in a safe and efficient manner,” Carroll wrote.

The funding will give SEPTA temporary relief from a $213 million operating budget deficit and lack of financial allocation from the state legislature, which were cited as reasons for the recent service reductions. 

In the letter, Carroll also noted the refusal from Senate Republicans to “agree on a long-term solution that provides certainty and does not also unfairly raid mass transit capital dollars for unrelated expenditures.” 

Shapiro shared similar sentiments with Carroll.  

“I think we have come to the conclusion here that the Republicans who are in the majority in the state Senate were unwilling to pass recurring revenue,” Shapiro said. 

SEPTA said that during the week of Aug. 25, more than 4,400 people were left behind at bus and trolley stops due to crowded conditions caused by the service cuts. The number of delayed bus trips was up more than 26% compared to normal.

“Over the last two weeks, we have seen the devastating effects of the service cuts on our customers,” Sauer said. “Our riders deserve better, and they deserve stability.” 

Economic analysis has shown that if SEPTA had continued with the planned service cuts, it could have cost the region $6 billion in long-term earnings and eliminated 76,700 jobs. 

“We are grateful to the Governor and our legislative delegation, and all of our advocates, for their tireless efforts to rally for transit funding,” Sauer said. “We are urging all parties to continue to work towards an agreement on a transit funding plan that preserves the service our customers and region deserve.” 

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